Service beyond numbers



PROFESSIONAL SERVICES



Accounting, Audit And Tax Services

• Tax Compliance Assistance

• Agreed upon procedure/engagements

• Assurance Services

• Compliance Services

• Annual audit of financial statements (AAFS)

• Internal control compliance

• Cost accounting and inventory control

• Budgeting and forecasting

• Accounting software set-up

• Tax services (monthly BIR compliance)

• General accounting (bookkeeping assistance)

• Payroll services

• SSS, PHIC & HDMF services

• Profit and loss analysis

• Financial Statements Preparation

• Income Tax Return (ITR) preparation

Corporate Secretarial Services

• SEC Registration

  •      One Person Corporation (OPC)
  •      Partnership
  •      Domestic Corporation
  •      Foreign (Branch and Representative Office)

• Settlement of SEC cases/assesments

• Revival and closure of Corporation

• SEC compliance (AFS, GIS, and SS/COEP)

• Increase/Decrease in Authorized Capital

• Confirmation of Valuation

• Transfer of shares of stocks

Consultancy And Other Professional Services

• Business Registration

  • DTI
  • LGUs ( barangay & mayor’s permit)
  • BIR registration and printing of receipts
  • SSS, PHIC & HDMF registration
  • BMBE (Brgy. Micro Business Enterprise)

• Settlement of BIR open cases/assessments

• Tax Treaty

• Estate, Donor’s and Excise tax

 

 

Latest Articles



One Person Corporation vs. Single Proprietorship

Under the Revised Corporation Code, setting up a business as a One Person Corporation (OPC) is already permitted. One of the reason of adopting OPC is because of the growing number of micro, small and medium enterprises (MSMEs). These MSMEs, mostly sole proprietorships, find themselves in extreme hardship because of the unlimited liability. With the OPC, these MSMEs will be treated separately from the person owning it thereby enjoying the limited liability of a corporation. In a One Person Corporation (OPC), the five to fifteen (5 to 15) incorporator requirement in a normal corporation has been dispensed with. There is another advantage in terms of decision making, as a one-man show, formalities expected of a board of directors has been eliminated, subject to disclosing the name of the corporation along with the suffix “OPC.”

Is it favorable being organized as an OPC compared to a single proprietor?

• Tax - OPC has a better right to the standard optional deduction of 40 percent for income tax purposes.

• Succession - if the single proprietor dies, all liabilities and assets of his business are passed on to his heirs but not the business license. While if the business is registered as an OPC, the corporation’s life is perpetual under the new corporation code. At the early registration the OPC owner is required to designate a nominee and alternate nominee who can take over the business in the event of his death or incapacity.

• Liability - Single proprietor is directly liable while OPC has a separate juridical personality from its individual owner.

Moreover, a foreigner may register as an OPC subject to the applicable constitutional and statutory restrictions; subject to the 11th Foreign Negative List (FNL).

SEC Chairperson Emilio Aquino said in the statement, “ An OPC offers the agility and complete dominion of a sole proprietorship and the limited liability of a corporation. We encourage everyone to take advantage of this provision to pursue their entrepreneurial aspirations.”

Business Registration in the Philippines

A businessman or aspirant entrepreneur, while in eureka moment, figures business the first thing. In starting up a business, what are the requirements?

Business registration in the Philippines has become easier and convenient with the conception of online government registration services.

There are three forms of Business Organizations:

• Single Proprietorship

• Partnership

• Corporation



Single Proprietorship

Owned and managed by one natural person, its name registration is with Department of Trade and Industry (DTI).

Basic Requirements

• At least three (3) proposed business names;

• Business name applicant must be above 18 years old and a Filipino citizen;

• Must have at least 2 valid (government issued) identification cards

 

Partnership and Corporation

Partnership is a form of business for profit wherein two or more persons contribute to a common fund in money, property or service. A corporation on the other hand is formed in accordance with the Revised Corporation Code (Republic Act 11232). In this type of business organization, a single individual could be an OPC, but there is a maximum number of 15 incorporators/directors. Registration for both is with the Securities and Exchange Commission (SEC).

Basic Requirements

• Cover Sheet

• Articles of Partnership/Articles of Incorporation

• By-Laws for Corporation

 

Depending on the type of industry, ownership of the corporation must observe the limitations set forth in the 11th Foreign Investment Negative List, some are listed below:

• Domestic Corporation with 0% Foreign Equity (100% Filipino-owned)

• Domestic Corporation with 0.01% to 40% Foreign Equity

• Foreign-Owned Domestic Corporation with 40.01% to 100% Foreign Equity

• Foreign-Owned Corporation with 0.01% to 100% Foreign Equity

• One Person Corporation (OPC)

• Financing Corporation

• Lending Corporation

Guide to Philippine Tax

1. Income Tax

2. Estate Tax

3. Donors Tax

4. Value Added Tax (VAT)

5. Other Percentage Tax

6. Compensation Withholding Tax (CWT)

7. Expanded Withholding Tax (EWT)

8. Final Withholding Tax (FWT)

9. Documentary Stamp Tax (DST)



Income Tax

Income tax in the Philippines comprises yearly EARNINGS which include compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items and gross income derived from the conduct of trade or business or the exercise of a profession.



Estate Tax

Estate tax in the Philippines is a tax imposed on the privilege of transmitting property upon the death of the owner. Donations which are to take effect upon the death of the donor and therefore partake of the nature of testamentary dispositions are subject to estate tax.



Donors Tax

Donor’s tax in the Philippines is imposed on the transfer by any person, resident or non-resident, of property by gift. The donations subject to donor’s tax are GRATUITOUS TRANSFERS between PARTIES to take effect during the lifetime of the donor.



Value Added Tax (VAT)

VAT in the Philippines applies, in general, to all persons who sell, barter, exchange or lease goods or properties, or render services in the course of trade or business and those who import goods, whether for business or otherwise and whose annual sales or gross receipts exceed PhP 3,000,000, OR THOSE WHICH ARE VAT REGISTERED, REGARDLESS OF TOTAL SALES OR COLLECTION.



Percentage Tax

Percentage tax on the gross quarterly sales or receipts of persons who are otherwise subject to the VAT but whose annual sales or gross receipts do not exceed PhP 3,000,000 and are not VAT-registered.



Compensation Withholding Tax (CWT)

CWT is the tax withheld from income payments to individuals arising from an employer-employee relationship, receiving purely compensation income – Compensation is the remuneration for services performed by an employee for his employer under an employer-employee relationship.



Expanded Withholding Tax (EWT)

EWT is a kind of withholding tax which is prescribed on certain income payments and is creditable against the income tax due of the payee for the taxable quarter/year in which the particular income was earned.



Final Withholding Tax (FWT)

FWT is a tax withheld which prescribed only for certain payors and is not creditable against the income tax due of the payee for the taxable year. Income to which the said Final Withholding Tax pertain is no longer subject to ordinary income tax.



Documentary Stamp Tax (DST)

The DST in the Philippines is an excise tax levied on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto. The amount of tax is either fixed or based on the par or face value of the document or instrument.